Beware! BlazeCapitals.com is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
The website of BlazeCapitals.com doesn’t match the industry standards- there are way too many issues with it. That’s certainly a cause for concern, especially when they claim to be one of the world’s leading brokers. The look of the website aside, they introduce themselves as a broker that’s operating in Switzerland and UK but fail to give evidence to support their claims. We found other very troubling aspects of their business which we are going to share with you in the full BlazeCapitals.com review.
BlazeCapitals.com REGULATION AND SAFETY OF FUNDS
It seems that BlazeCapitals.com wants us to believe it’s a legal entity that’s authorised to operate in the UK and Switzerland, but they weren’t able to legitimise themselves. The companies that they mention exist only in the imagination because there is no information about that you can find anywhere upon research. On the other hand, they claim that the Estonian governing laws are ruling their business conduct, which makes their situation boggy, to say it politely. We went through the registers of the financial regulators in Britain, Switzerland and Estonia but couldn’t find a single detail about such an entity. All of the countries mentioned are imposing stringent rules that a company has to meet in order to get an FX license. Hence it’s no wonder that a malign business creature with a broken website such as BlazeCapitals.com is not present in the financial authorities registers. In Switzerland alone, the brokers have to provide 20 million Swiss Francs in paid-up capital to call themselves legit.
Your funds are not safe if you make a deposit with BlazeCapitals.com because it’s an unlicensed and unregulated Forex broker that’s trying to mislead the traders, which is a major red flag and solid evidence of a scam.
If you are looking for a reliable, trustworthy Forex broker choose a proven CySEC(EU) or FCA(UK) regulated company, which are not surprisingly the leaders in the retail Forex industry. In the EU and Britain, the Forex brokers have to comply with many strict rules and regulations, such as minimum capital requirements of 730 000 EUR, personnel qualification standards, segregation of the clients’ accounts and so on. But most importantly, there are money protection schemes in operation, such as ICF in Cyprus and FSCS in the UK, that guarantee the safety of the deposits made by the traders. Under CySEC(Cyprus) supervision, you can claim up to 20 000 EUR in compensation, while in the UK under FCA you are guaranteed of even up to 85 000 GBP per client. Each EU member state is compelled to operate similar insurance funds, which are seen to be the last resort for the traders, in case a Forex broker fails to meet its financial obligations.
BlazeCapitals.com TRADING SOFTWARE
BlazeCapitals.com offers some web-based platform of theirs, but we were unable to access it due to some technical issue we are not aware of. The credentials that they gave us did not make any use, and on top of that, the clients are not allowed to register an additional account. Traders should know that the platforms brokers develop themselves are unstable and unreliable, with very few exceptions. Moreover, and this is especially true for anonymous and offshore brokers such as BlazeCapitals.com, the web-based software provided is usually prone to fraud and price manipulation. See the result when we tried to reach their trading platform at the bottom of this section.
Avoid BlazeCapitals.com and its broken platform but stay safe and choose regulated MetaTrader4 and MetaTrader5 Forex brokers because MT is known to be the best retail Forex platform. It’s highly acclaimed for its reliability but also comes with sophisticated trading tools that you can hardly find anywhere else for free. The list includes Expert Advisors, Algo trading, Complex Indicator and a marketplace where the traders can find even more third-party-developed tools to implement in the trading strategy.
As a result, we have no information about the real spreads and the leverage levels that apply. But it’s even worse because BlazeCapitals.com do not even mention a word about the two essential features in trading. Instead, BlazeCapitals.com focuses on explaining how suitable for trading the Cryptocurrencies are and how the traders might benefit from the high volatility on the digital coins market. But they choose not to warn the traders that the increased volatility also means risks and more often than not, bring losses that are very difficult to repair! It’s a typical scam sign just to outline the positive sides of trading but omit the dangers involved.
In a few words: the spread is the price that the trader has to pay to open a position on the market, so the lower spreads are beneficial for the traders. The leverage on the other side is a financial instrument that allows the traders to multiply the size of the positions opened, but the risk of loss proportionally increase. Precisely the risks involved made EU, UK and Australia (from 2021) impose a leverage cap on the market- 1:30 as a customer protection measure. Canada and the US agreed on 1:50, so we recommend that the traders should not look for traders offering increased leverage because they will undoubtedly come across a crowd of scam brokers.
BlazeCapitals.com DEPOSIT/WITHDRAW METHODS AND FEES
The minimum initial deposit is said to be $250 or the equivalent in other currencies. It’s in line with the offshore brokers’ standards, but twice as high if compared with the legit ones- $100 on average.
BlazeCapitals.com claims to offer a variety of funding methods, but it’s a deception that raises yet another red flag. The only options are three unpopular e-wallets where the traders should buy Cryptocurrencies from, which will later be transferred to BlazeCapitals.com. Find out more about the Crypto funding scam later in the review.
The minimum withdrawal amount is $250, which is a truly unfair requirement. Most of the regulated brokers will not impose such harsh restrictions on the traders’ withdrawals. The transaction fees are as follows- $25 plus $10 processing fee for Credit/Debit card withdrawal and $50 for Wire Transfers, which is a midday robbery. On top of that, a levy of 10% the withdrawal amount will be charged unless the trader reached a minimum trading volume- 200 in turnover. They fail to specify what 200 stands for, but it’s a scam clause whatsoever.
An account becomes dormant after 6 months of inactivity and will be subject to a deduction of 10% each month, which is the next scam clause that we have to pay attention to. In comparison, most of the regulated brokers will charge the accounts with an inactivity fee of not more than 5 to 10 dollars per month.
BlazeCapitals.com does not offer bonuses at the moment but reserves the right to launch campaigns in the future. The bonuses though are subject to separate trading conditions and requirements- a minimum trading volume of 25 times the amount the bonus plus the deposit should be executed by the trader to become eligible for withdrawal. You should know- the bonuses are not free money but a leverage tool that further increases the risks and benefit the broker, not the traders.
BlazeCapitals.com is a fishy enterprise that’s most probably a scam, and the traders should avoid this broker!
HOW DOES THE SCAM WORK
The scammers and the offshore brokers are crazy about Cryptos because no government body controls this form of digital money, and it might be considered untraceable. It’s a powerful scam sign if an alleged Forex broker is accepting only Crypto deposits because it’s almost impossible to make a refund and get your money back! The scammers also love the Cryptocurrency trading pairs because these derivatives are easy to manipulate the price. Not to mention that the spreads of the Crypto pairs are enormous, which is bad for the traders, but great for the brokers because they pocket Buy/Sell quotes difference. The UK even considered a ban on the Cryptocurrency pairs as a customer protection measure, which will come in effect from the spring of 2021
WHAT TO DO WHEN SCAMMED
No one is immune to scam, and anyone can fall into the trap. Scammers are always looking for new and different ways to scam consumers. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you necessary instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing. Seek help actively!
It’s very important not to rush blindly trying to recover your funds because many scam recovery agencies and individuals are stalking, aiming to double scam the victims. These will most likely ask for an advanced payment, but will do nothing to help you recover your losses!
Share online your experience; it’s important to protect others, as well. Be responsible!